Bookshelf v8.1/8.2: Scenarios for Calculating Taxes, Service Charges, and Revenues

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Scenarios for Calculating Taxes, Service Charges, and Revenues

This topic gives the following examples of how Siebel Hospitality calculates revenue according to whether taxes and service charges are applied. You might use Siebel Hospitality differently, depending on your business model.

NOTE: Revenue does not include taxes or service charges.

In these scenarios, service charges are not taxable. If the business processes of your organization or the regulations of your locale require service charges to be taxed, you can set up service charges as taxable in Siebel Hospitality. For more information, see Creating a Service Charge.

Tax and Service Charge Not Included

A customer wants to book an event at a property, including a quantity of sleeping rooms. A sales representative quotes a rate that does not include tax and service charge. The specific rate, charges, and options are shown in Table 32.

Table 32. Tax and Service Charge Not Inclusive Input
Charge or Option	Value
Room Rate	100.00
Tax	10 percent
Service Charge	5.00
Tax Inclusive	False
Service Charge Inclusive	False

In this scenario, the calculation returns the values shown in Table 33.

Table 33. Tax and Service Charge Not Inclusive Results
Category	Calculation	Amount
Revenue	Room rate	100.00
Tax	10 percent of room rate	10.00
Service Charge	5.00	5.00

Tax and Service Charge Included

A customer wants to book an event at a property, including a quantity of sleeping rooms. A sales representative quotes a rate that includes tax and service charge. The specific rate, charges, and options are shown in Table 34.

Table 34. Tax and Service Charge Inclusive Input
Charge or Option	Value
Room Rate	100.00
Tax	10 percent
Service Charge	5.00
Tax Inclusive	True
Service Charge Inclusive	True

In this scenario, the calculation returns the values shown in Table 35.

Table 35. Tax and Service Charge Inclusive Results
Category	Calculation	Amount
Revenue	Ten-elevenths of the sum of room rate minus service charge	86.36
Tax	One-eleventh of the sum of room rate minus service charge (10 percent of revenue)	8.64
Service Charge	5.00	5.00

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